Heat pump rebates, program by program

The rebate depends on who sends your power.

The money for a heat pump here now comes from your local power program, not the state. Here's what each one pays and the step people miss, taken from each program's own terms.

CSLB license#1155755

What they pay

Heat pump rebates still open near you

Before you sign

The questions that decide whether you get paid

Each program sets its own order of steps, and the order is where rebates get lost.

  1. Has your rebate been approved yet?

    If yes

    Then book the install

    Don't sit on it: San Jose Clean Energy holds approved money for 120 days, and so does Palo Alto.

    Heat pump installation

    If no

    Apply before the work starts

    San Jose Clean Energy, Silicon Valley Clean Energy and Palo Alto all want the application in first. WestLight is the odd one out: you apply after the install, within ninety (90) days.

  2. Is the heat pump replacing gas heat?

    If yes

    That's the swap they pay for

    WestLight, Silicon Valley Clean Energy, San Jose Clean Energy and Silicon Valley Power all write their amounts for a heat pump taking over from gas.

    If no

    Fewer programs pay

    WestLight leaves out heat pumps that only replace electric heaters or a fireplace. Silicon Valley Power still pays $1,000 per system for replacing electric resistance heat.

  3. Keeping the gas furnace as a backup?

    If yes

    Some rebates drop out

    WestLight and San Jose Clean Energy turn down dual fuel systems, and Silicon Valley Clean Energy asks for the original gas appliance to come out.

    Hybrid dual fuel

    If no

    All-electric keeps them open

    WestLight's terms take any fully electric heat pump setup: ducted or ductless, split or packaged.

  4. Is it a single-stage heat pump?

    If yes

    Not for Silicon Valley Clean Energy

    Its rebate leaves single-stage heat pumps out and wants a SEER2 of 16 or greater, or an inverter.

    SEER2 and the minimums

    If no

    An inverter clears that bar

    An inverter heat pump meets Silicon Valley Clean Energy's efficiency rule whatever its SEER2.

What each program pays, and when to apply

Amounts are for a heat pump replacing gas heat, from each program's current terms. WestLight Energy is the new name of Peninsula Clean Energy, so older paperwork may say either.

ProgramPaysWhen to apply
WestLight Energy$1,500 per heat pumpAfter the install, within ninety (90) days
Silicon Valley Clean Energy$2,000, or $3,000 income-qualifiedBefore the install
San Jose Clean Energy$1,500, or $2,500 in an Environmental Justice CommunityApproved before installation begins
Silicon Valley Power$3,000 per ton, up to $10,000Within 60 days of the building permit final date
CleanPowerSFUp to $1,200 in bill creditsInstalled on or after April 14, 2026

Source: WestLight Energy (formerly Peninsula Clean Energy), Home Upgrade Rebates Terms and Conditions (updated May 18, 2026). Rules and programs change: last checked 2026-10-22.

Source: Silicon Valley Clean Energy, Appliance Specifications (April 2026). Rules and programs change: last checked 2026-10-22.

Source: Silicon Valley Clean Energy, Home Rebates. Rules and programs change: last checked 2026-10-17.

Source: San Jose Clean Energy, EcoHome Equipment Specifications (updated 7/1/2026). Rules and programs change: last checked 2026-10-22.

Source: San Jose Clean Energy, EcoHome Rebate. Rules and programs change: last checked 2026-10-22.

Source: Silicon Valley Power, Residential Heat Pump HVAC Rebate Rules. Rules and programs change: last checked 2026-10-22.

Source: CleanPowerSF, Electrify Your Home. Rules and programs change: last checked 2026-10-22.

Source: City of Palo Alto Utilities, Rebate Hub. Rules and programs change: last checked 2026-10-17.

Source: Silicon Valley Clean Energy, Home Rebates Participant Agreement. Rules and programs change: last checked 2026-10-22.

Why the state and federal money isn't in the table

The federal tax credit for home efficiency upgrades is not allowed for anything placed in service after December 31, 2025.

California's HEEHRA rebates for single-family homes have been fully reserved statewide since February 24, 2026. Requests that weren't approved sit on a waitlist, and a waitlisted home only gets the rebate if the heat pump goes in after its reservation is approved.

TECH Clean California's single-family heat pump incentives have been reserved since November 14, 2025, and BayREN reports the funding available for 2026 is fully subscribed.

Source: IRS, FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21 (OBBB). Rules and programs change: last checked 2026-10-22.

Source: California Energy Commission, Inflation Reduction Act Residential Energy Rebate Programs. Rules and programs change: last checked 2026-10-22.

Source: TECH Clean California, single-family incentives. Rules and programs change: last checked 2026-10-22.

Source: Bay Area Regional Energy Network, find incentives. Rules and programs change: last checked 2026-10-17.

Ask before you choose the equipment

The rebate rules can pick the system for you: single-stage or inverter, dual fuel or all-electric. Tell us your town when you call and we'll go through which program applies.

Tell us what it's doing. We'll take it from there.

Call and describe the problem: the noise, the smell, the room that never warms up. Or book a visit online.

A heat pump outdoor unit with its service panel off beside a San Mateo home

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